Vehicle contract hire, also known as car leasing, is a popular way to obtain a new car without the high upfront costs and long-term commitment of buying. It has become increasingly popular in recent years due to its convenience, flexibility, and cost-effectiveness. In this article, we will explore what vehicle contract hire is, how it works, and its benefits.

What is Vehicle Contract Hire?

Vehicle contract hire is a long-term rental agreement between a customer and a leasing company. The customer pays a fixed monthly fee to use a vehicle for a predetermined period. At the end of the lease period, the customer returns the car to the leasing company, and the contract ends. The customer does not own the car at any point during the contract. Instead, the leasing company remains the legal owner of the car throughout the lease term.

How Does Vehicle Contract Hire Work?

Vehicle contract hire is straightforward and convenient. The customer chooses the make and model of the car they want and how long they want to lease it. The leasing company will then provide the customer with a quote for the monthly payments, which will depend on the car’s value, length of the lease, and mileage allowance. The customer will also need to pay an initial deposit upfront.

During the lease term, the customer is responsible for servicing and maintaining the car, as well as paying for any repairs or damages. The leasing company will also typically impose a mileage limit, and exceeding this limit will result in additional charges at the end of the lease. At the end of the lease, the customer returns the car in good condition, and the leasing company will inspect the vehicle and calculate any charges for exceeding the mileage limit or damages.

Benefits of Vehicle Contract Hire

There are several benefits to opting for vehicle contract hire over buying a car outright. Firstly, the initial deposit and monthly payments are typically lower than if the customer were to buy the car outright, making it more affordable. Secondly, the customer has access to a brand new car every few years, without having to worry about depreciation or selling the car on at the end of the term. Thirdly, the customer doesn’t have to worry about the value of the car depreciating, as they are not the owner and are not personally responsible for its resale value.


Vehicle contract hire is a convenient and cost-effective option for those looking to have access to a brand new car without the long-term commitment and high upfront costs of buying. If you’re in the market for a new car, it’s worth considering vehicle contract hire as a viable alternative to purchasing a car outright. With its flexibility, convenience, and financial benefits, it’s no wonder that vehicle contract hire is becoming an increasingly popular choice for drivers.